France boosts energy communities

The French government is working to boost energy communities. Through an anticipated decree, it has increased the maximum distance over which members can share energy. Specifically, the measure increases the range from two kilometres to 20 kilometres, which is a major change. But it is not the only one we need to be aware of.

‍The regulation also affects the extent of collective self-consumption initiatives. If they are in a peri-urban region, they will be able to extend up to 10 kilometres, while rural ones can extend up to 20 kilometres. Also, to avoid confusion for their citizens, the authorities have explained how they consider a community to be in one or the other situation.

‍Municipalities with a rural character are those that belong to categories of rural villages, rural areas with scattered or very scattered habitats. Peri-urban municipalities are those in the categories of small towns or medium-density urban belts. Thus, the members of the energy communities will know which category they are in in a simple way.

What is the situation in Spain?

The Spanish situation is not very different from the French one, although there have been some problems. In October 2022, the Spanish government approved a royal decree proposed by the Ministry for Energy Transition and the Demographic Challenge that caused some uproar. This regulation restricted the linkage to a solar installation for self-consumption to a maximum of one kilometer.

A decision like this involved numerous complaints and criticism from citizens, which led to a change in the regulation. That is, the distance was increased from one kilometer to two. In addition, the government has taken different measures in the last year to promote self-consumption. All of them belong to the Plan Más Seguridad Energética (Plan +SE) approved in October 2022.

The plan has three essential objectives:‍

1. To increase the protection of the population against the energy price crisis.
2. To strengthen Spain's strategic and energy autonomy.
3. To deepen solidarity with other member states in various ways, such as reinforcing gas exports to France.

‍Initial royal decree

Among the 73 measures of the +SE Plan, nine were aimed at self-consumption of#renewable energy. Some of them were taken as the basis for Royal Decree-Law 18/2022, such as the one that determined the distance at which a self-consumption installation could be linked to a grid. This is number 33, which was the source of the criticism.

The problem goes back a long way, as the original distance between the installation and the self-consumer was only 500 metres. Such a situation generated a lot of criticism from users, from companies to individuals, but also from employers, trade unions and environmental groups. In an attempt to tackle the problem, the government took advantage of the new royal decree to propose an increase.

This was anticipated in measure 33 of the Plan +SE, but only stated that the distance would be increased without mentioning how much. An indication was given that the formula that maximises the use of roofs and minimises grid connection losses would be sought.

Equalisation with France and Portugal

Given the criticism that arose from different sectors of society, the government had to extend the distance on up to two occasions. This allowed it to put Spain on a par with France and Portugal, both countries with a connection distance of two kilometres, and provided an effective solution for consumers, whether companies or individuals. But we should not believe that the discussion generated has been sterile or meaningless, as it is important.

The connection distance is a key factor and the two kilometres are not a whim, as they allow a city to be linked to the industrial estates in its vicinity. This makes it easier for shared self-consumption to develop its full potential by combining different #solar panel installations. From those belonging to a community of neighbours to those belonging to a company, all users benefit.

Promoting renewable energy

As we have seen, promoting the use of #renewable energy is not easy. A legislative framework needs to be developed that is appropriate to the reality of users, the electricity grid and installations. Otherwise, obstacles will be placed in the way of the different self-consumption initiatives and, moreover, the energy transition will be slowed down. However, despite the difficulties, steps are gradually being taken in the right direction.

Catching up with neighbouring countries is a step forward, but much remains to be done. The 2000 metre increase referred to rooftop power plants, i.e. photovoltaic installations on the roofs of buildings, which was widely criticised.

Advantages of an energy community‍

• Energy communities have a number of advantages that are worth knowing about: They reduce the energy consumption of the general network.
• They achieve economic savings for the end consumer.
• They contribute to boosting local employment and develop the community fabric.
• They generate investment opportunities for citizens and local businesses.
• They increase the use of renewable energies.

Is it easy to create energy communities?

Creating an energy community in Spain is simple. You just need to have a group of interested people, design a sustainable project based on renewable energies, finance it and obtain the necessary permits. The latter range from building permits to design and feasibility studies. By fulfilling the above-mentioned requirements, we can enjoy the advantages offered by the communities.

With RD 18/2022, Spain is seeking to catch up with its neighbours in terms of self-consumption. Despite the controversy generated, the government shows that its intention is to reduce the obstacles. Thus, the future looks bright for energy communities.